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Business Segments
 9 Months Ended
Sep. 30, 2024
Segment Reporting [Abstract]  
Business Segments Business Segments
We have distinct businesses, which are aligned with HSBC's global business strategy: Wealth and Personal Banking ("WPB"), Commercial Banking ("CMB") and Global Banking and Markets ("GBM"). These businesses and a Corporate Center ("CC") serve as our reportable segments with the exception of GBM. Our GBM business is comprised of three distinct operating segments: Global Banking ("GB"), Markets and Securities Services ("MSS"), and Global Banking and Markets Other ("GBM Other"), which are separately reported. There have been no changes in the basis of our segmentation as compared with the presentation in our 2023 Form 10-K.
Net interest income of each segment represents the difference between actual interest earned on assets and interest incurred on liabilities of the segment, adjusted for a funding charge or credit that includes both interest rate and liquidity components. Segments are charged a cost to fund assets (e.g., customer loans) and receive a funding credit for funds provided (e.g., customer deposits) based on equivalent market rates that incorporate both repricing (interest rate risk) and tenor (liquidity) characteristics. Net funding charges associated with MSS trading activities are reported within other operating income to align with the trading revenue generated by such activities. These net funding charges are reversed back into net interest income in the CC. The objective of these charges/credits is to transfer interest rate risk to one centralized unit in Markets Treasury. Markets Treasury income statement and balance sheet results are allocated to each of the global businesses based upon tangible equity levels and levels of any surplus liabilities.
Certain other revenue and operating expense amounts are also apportioned among the business segments based upon the benefits derived from the activity or the relationship of the activity to other segment activity. These inter-segment transactions have not been eliminated, and we generally account for them as if they were with third parties.
Our segment results are presented in accordance with HSBC Group accounting and reporting policies, which apply IFRSs as issued by the IASB. As a result, our segment results are prepared and presented using financial information prepared on the Group Reporting Basis as operating results are monitored and reviewed, trends are evaluated and decisions about allocating resources, such as employees, are primarily made on this basis. We continue, however, to monitor capital adequacy and report to regulatory agencies on a U.S. GAAP basis.
There have been no changes in the measurement of segment profit as compared with the presentation in our 2023 Form 10-K.
In October 2024, HSBC announced plans to simplify its organizational structure effective January 1, 2025 to accelerate delivery against its strategic priorities. We are currently evaluating the impact of these plans on our financial reporting. To the extent we make changes to the financial information being reported to our management in the future, we will evaluate any impact such changes may have on our segment reporting.
A summary of significant differences between U.S. GAAP and the Group Reporting Basis as they impact our results are summarized in Note 25, "Business Segments," in our 2023 Form 10-K. There have been no significant changes since December 31, 2023 in the differences between U.S. GAAP and the Group Reporting Basis impacting our results.
The following table summarizes the results for each segment on a Group Reporting Basis, as well as provides a reconciliation of total results under the Group Reporting Basis to U.S. GAAP consolidated totals:
 Group Reporting Basis Consolidated Amounts   
GBM
WPBCMBGBMSSGBM OtherCCTotal
Group Reporting Basis
Adjust-
ments(1)
Group Reporting Basis
Reclassi-
fications(2)
U.S. GAAP
Consolidated
Totals
 (in millions)
Three Months Ended September 30, 2024
Net interest income (expense)$175 $305 $136 $13 $(3)$(175)$451 $9 $(21)$439 
Other operating income (expense)8 29 78 72 (48)174 313 (7)28 334 
Total operating income (expense)183 334 214 85 (51)(1)764 2 7 773 
Expected credit losses / provision for credit losses2 21 (4)— — — 19 (32)— (13)
181 313 218 85 (51)(1)745 34 7 786 
Operating expenses207 187 133 78 25 24 654 10 7 671 
Profit (loss) before income tax$(26)$126 $85 $7 $(76)$(25)$91 $24 $— $115 
 Group Reporting Basis Consolidated Amounts   
GBM
WPBCMBGBMSSGBM OtherCCTotal
Group Reporting Basis
Adjust-
ments(1)
Group Reporting Basis
Reclassi-
fications(2)
U.S. GAAP
Consolidated
Totals
 (in millions)
Three Months Ended September 30, 2023
Net interest income (expense)$175 $285 $111 $4 $(9)$(134)$432 $1 $(61)$372 
Other operating income28 74 92 115 17 120 446 (8)79 517 
Total operating income (expense)203 359 203 119 8 (14)878 (7)18 889 
Expected credit losses / provision for credit losses(5)8 (18)— — — (15)7 — (8)
208 351 221 119 8 (14)893 (14)18 897 
Operating expenses194 175 144 68 19 36 636 4 18 658 
Profit (loss) before income tax$14 $176 $77 $51 $(11)$(50)$257 $(18)$— $239 
Nine Months Ended September 30, 2024
Net interest income (expense)$529 $884 $369 $30 $18 $(502)$1,328 $22 $(73)$1,277 
Other operating income (expense)133 189 266 231 (2)507 1,324 (13)99 1,410 
Total operating income662 1,073 635 261 16 5 2,652 9 26 2,687 
Expected credit losses / provision for credit losses— 56 (4)— — — 52 (16)— 36 
662 1,017 639 261 16 5 2,600 25 26 2,651 
Operating expenses592 555 398 238 72 142 1,997 17 26 2,040 
Profit (loss) before income tax$70 $462 $241 $23 $(56)$(137)$603 $8 $— $611 
Balances at end of period:
Total assets$38,385 $54,909 $10,122 $35,264 $38,053 $4,278 $181,011 $(13,212)$— $167,799 
Total loans, net25,785 24,045 9,828 117 76 — 59,851 (1,054)2,670 61,467 
Goodwill— 358 — — — — 358 100 — 458 
Total deposits28,903 43,333 40,881 1,393 1,264 — 115,774 (1,192)8,791 123,373 
Nine Months Ended September 30, 2023
Net interest income (expense)$582 $858 $373 $32 $(21)$(347)$1,477 $4 $(192)$1,289 
Other operating income132 225 238 261 63 317 1,236 (57)239 1,418 
Total operating income (expense)714 1,083 611 293 42 (30)2,713 (53)47 2,707 
Expected credit losses / provision for credit losses(3)38 12 — — — 47 1 — 48 
717 1,045 599 293 42 (30)2,666 (54)47 2,659 
Operating expenses420 484 420 208 51 104 1,687 200 47 1,934 
Profit (loss) before income tax$297 $561 $179 $85 $(9)$(134)$979 $(254)$— $725 
Balances at end of period:
Total assets$42,719 $52,215 $9,554 $42,663 $36,303 $2,988 $186,442 $(22,085)$— $164,357 
Total loans, net23,178 23,119 9,009 104 394 — 55,804 (313)1,525 57,016 
Goodwill— 358 — — — — 358 100 — 458 
Total deposits29,253 44,948 38,810 825 1,668 — 115,504 (3,853)8,277 119,928 
(1)Represents adjustments associated with differences between U.S. GAAP and the Group Reporting Basis.
(2)Represents differences in financial statement presentation between U.S. GAAP and the Group Reporting Basis.